If you've maxed out your credit cards and are getting deeper in debt, chances are you're feeling overwhelmed. How are you ever going to pay down the debt? Now imagine hearing about a company that promises to reduce — or even erase — your debt for pennies on the dollar. Sounds like the answer to your problems, right?
Advice you can trust
What Can Happen If Joint Debts Go Unpaid
However, when you co-sign for a loan or sign up for any sort of joint agreement — such as credit cards and lines of credit — you effectively enter a legal agreement with your creditors in which any debt incurred is the joint responsibility of both parties. If you and your spouse get a divorce, both of you are still equally responsible for any joint debts. From there, you have the option of handling your joint debt in divorce by paying your debts together or separately. You can use joint savings or tap into a home equity line of credit in a jointly owned home to pay off any joint debts. Or, you can liquidate any joint assets — such as a car or a home — and put the proceeds towards your debt. If you and your spouse want to pay your joint debts separately, there are a couple of ways to handle debt payments. The catch here is that each of you will need to qualify for the debt on your own. You can also write a letter to your creditor or lending institution stating that you will pay a certain amount, with the remainder paid by your spouse. To ensure that your credit rating remains intact, you can have your spouse transfer the balance of the debt to a credit card in his name, effectively making him responsible for paying off the remainder of the debt. If only one person incurred the debt on the joint account and is willing to take responsibility, you can ask your creditor or lending institution if one person can qualify for the debt on their own merit.
If you want to find out more, see our Cookies Policy. Click anywhere in this area to hide this message. After paying your outgoings and making arrangements to pay your priority debts, there may be nothing left to pay other creditors. If you have nothing left, say so. Ask your creditors to hold action until your circumstances improve.
As the world gets smaller and more and more of us move either abroad or to America, Canada, Australia, or the UAE, the issue of carrying our debts with us, and insolvency issues, becomes more complicated and complex. What are the collection laws in various countries and how will they affect me if I move? Example 1: You leave the UK and move to Australia. You left behind accounts you owed money on, and for a period of time you were making the payments on those accounts. Then for whatever reason stop making payments on the accounts in the UK. You then receive collection notices and possibly a phone call from the creditor in the UK demanding payment. As the creditor or collection agency has no authority in Australia, there is little they can do to force you to pay. They could however, make you bankrupt in the UK, which if you have any assets anywhere in the world, could cause a problem, as in a UK bankruptcy, any property, no matter where it is located, can be taken in the bankruptcy. The main issue here is going to be if the collection firm in the country where you had the debts, in that example the UK, has any authority in the new country where you live, in that example, Australia.